lauren: it is thursday, february 28th. this is a special edition physical. of "fbn: a.m.." i'm lauren simonetti. cheryl: i'm cheryl casone. the president saying no deal with north korea's kim jong un, leaving vietnam two hours early, en route back to washington. markets watching owl of this. let's take a look at futures. we're pared losses. the dow is down 73 in the premarket, nasdaq down 33 and a quarter. big story in asia was south korea's kospi, the market actually. here's europe, and i'll talk about asia. south korea's kospi losing 1.5%,

ticking down. the nikkei in japan down substantially, almost 1%. lauren: global equities have a lot to respond to, sea of red no matter where you look this morning. yet so many investors, so many analysts say this might not be a total loss and they're optimistic. right now, we want to show you a little bit of what happened overnight. president trump in air force one, flying back to a pretty heated washington, d.c. but he did give a news conference before leaving hanoi, vietnam. >> thank you very much. i want to begin by thanking the prime minister and president of vietnam. we're in hanoi. it's an incredible city. what's happened over the last 25 years has been incredible for the people of vietnam, the job they've done, economic development, really something

special. so i want to thank all of the people of vietnam for having treated us so well. we have i think reasonably attractive news from pakistan and india. they've been going at it and we've been involved in trying to have them stop and we have some reasonably decent news, i think hopefully that's going to be coming to an end. it's been going on for a long time, decades and decades. there's a lot of dislike unfortunately. so we've been in the middle, trying to help them both out, see if we can get some organization and some peace and i think probably that's going to be happening. we have venezuela as you know has been very much in the news and we're sending supplies. supplies are getting through. a little bit more. it's not easy. hard to believe somebody would say let's not do it.

what difference who that make, except it's great for his people tlet it get through. we're sending supplies down to venezuela. people are starving to death. you would really think that the man in charge currently would let he those supplies get through. we are getting them into some of the cities and some of the areas that need them the most and it's not an easy job. it's very difficult, actually. on north korea, we just left chairman kim. we had a really -- i think a very productive time. we thought and i thought and secretary pompeo felt that it wasn't a good thing to be signing anything. i'm going to let mike speak about it. but we literally just left. we spent pretty much all day with kim jong un, who is -- he's quite a guy and quite a character and i think our relationship is very strong. but at this time we had some

options and at this time we decided not to do any of the options and we'll see where that goes. but it was a very interesting two days. and i think actually it was a very productive two days. but sometimes you have to walk and this was just one of those times. i'll let mike speak to that for a couple of minutes, please. >> thank you, mr. president. we had been working -- our teams, the team that i brought to bear as well as the north koreans for weeks to try to develop a path forward. so at the summit we could make a big step, a big step along the way towards what the two leaders agreed to back in singapore in june of last year. we made real progress a and indeed we made more progress when the two leaders met over the last 24, 36 hours. unfortunately, we didn't get all the way. we didn't get to something that ultimately made sense for the united states of america. i think chairman kim was hopeful that we would. we asked him to do more. he was unprepared to do that.

but i'm still optimistic. i'm hopeful that the teams will get back together in the days and weeks ahead and continue to work out, it's a very complex problem. we have said since the beginning that this would take time. our teams have gotten to know each other better. we know what the limits are. we know what some of the challenges are. as we continue to work on this in the days and weeks ahead we can make progress so we can ultimately achieve what it is the world wants, which is to denuclearize north korea. wish we would have gotten further. i'm optimistic that the progress we've made, in the runup to the summit and the progress the leaders made, put us in a he position to get a really good outcome. president and chairman kim both felt good they had made the progress but couldn't get along the line any further to make a deal that would have been bigger at this point.

i hope we'll do so in the weeks ahead. thank you, mr. president. >> all right. major, please. >> has this process been more difficult than you thought and was the north korean demand for lifting of some sanctions the real sticking point here in that you did not want to do that and they did? >> it was about the sanctions. >> will there be a third summit, mr. president? >> basically, they wanted the sanctions lifted in their entirety and we couldn't do that. they were willing to denuke a large portion of the areas that we wanted but we couldn't give up all of the sanctions for that. we continue to work and we'll see. but we had to walk away from that particular suggestion. we had to walk away from that. >> will all the sanctions that are currently in existence remain, sir? >> they're in place. i was watching, as a lot of you folks over the weeks have said

oh, we've given up. we haven't given up anything. frankly, i think we'll end up being very good friends with chairman kim and with north korea. i think they have tremendous potential. i've been telling everybody, they have tremendous potential, unbelievable he potential. we're going to see. it was about sanctions. they wanted sanctions lifted. they were willing to give us areas but not the ones we wanted. john. >> as we know, there's an incredibly complex set of issues that are at play here in terms of lifting the sanctions and what what denuclearization is. >> right. >> did you get any distance towards what kim's vision of denuclearization is. >> we did, we did. >> there is a lot of -- a line of thinking that he wants to keep some nukes. would you allow him to do that and if you can't -- >> i don't want to comment. excuse me. i don't want to comment on that exactly but he has a certain

vision and it's not exactly our vision but it's a lot closer than it was a year ago and i think eventually we'll get there. but for this particular visit we decided that we had to walk and we'll see what happens. okay. look, we have a gentleman nobody's ever heard of, sean hannity, what are you doing here, sean hannity. should we let him do a question? i don't know. go ahead. >> if he wants the sanctions completely off and you want more on denuclearization, how can you bridge that gap between now and the next time you might sit down together. >> with time it will be bridged i think at a certain point. but there is a gap. we have to have sanctions and he wants to denuke but he wants to just do areas that are less important than the areas that we want. we know the country very well, believe it or not. we know every inch of that country and we have to get what

we have to get. that's a big give. yeah, shawn, please. >> i work in radio and tv. the mics on. mr. president, thank you. mr. secretary, good to see you. mr. president, if you could elaborate a little bit more on -- we have some history. president reagan walked away in rekiovich. a lot of condemnation at the time. it ended up working very well in tend for the united states. was this mostly your decision? what message would you want to send chairman kim as he's listening to this press conference about the future and your relationship? shawn, i don't want to say it was my decision because what purpose is that. i want to keep the relationship. we will keep the relationship. we'll see what happens over the next period of time. but as you know, we got our hostages back.

there's no more testing. one of the things that chairman kim promised me last night is regardless he's not going to do testing of rockets, nuclear, not going to do testing. i trust him and i take him at his word. i hope that's true. in the meantime, we'll be talking. mike will be speaking with his people. he's also developed a very good relationship with the people, really the people representing north korea. i haven't spoken to prime minister abi yet, i have spoken to president moon, south korea, but we will and we'll tell them it's a process and it's moving along but we just felt it wasn't appropriate to sign an agreement today. we could have. i just felt it wasn't very appropriate. jonathan. >> thank you, mr. president. two questions, if i may. first, did you learn anything new about chairman kim through

this meeting? and secondly, of course while this was going on, the drama back in washington, your former lawyer, michael cohen who worked for you for 10 years, his office right next to yours, by yours at trump tower, he called you a liar, con man, a racist. what's your response to michael cohen? >> well, it's incorrect and it's very interesting because i tried to watch as much as i could. i wasn't able to watch too much because i've been a little bit busy. but i think having a fake hearing like that and having it in the middle of this very important summit is really a terrible thing. they could have made it two days later or next week and it would have been even better. they would have had more time. but having it during this very important summit is sort of incredible and he lied a lot. but it was very interesting because he didn't lie about one thing. he said no collusion with the russian hoax. and i said yo i said i wonder we

didn't lie about that too like he did everything else. i was inpressed that he didn't say i think there was collusion for this reason. he didn't say that. he said no collusion. i was a little impressed by that, frankly. he could have gone all-out. he went 95% instead of 100%. the fact is, there is no l collusion. i call it a witch hunt. this should never happen to another president. it is so bad for our country, so bad. you look at this whole hoax, i call it the russian witch hunt, i now add the word hoax, it's a very, very bad thing for our country. but i was impressed with the fact that he -- because the most important question up there was the one on collusion and he said he saw no collusion. so we'll see what hams. but it was pretty shameful, i think. yes, ma'am, please. >> president trump -- >> go ahead.

how about one of you instead of three. >> i do have the microphone, i guess. >> excuse me. person in the front. go ahead. no, no, no, no. not you. excuse me. we'll get to you. thank you. >> thank you, president trump. janes han. what was the atmosphere like when you walked away from the negotiation table? >> i think it was very good, very friendly. this wasn't a walk-away like you get up and walk out. no, this was very friendly. we shook hands. there's a warmth that we have. i hope that stays. i think it will. but we are -- we're positioned to do something very special. this has been going on for many decades. this isn't me. this should have been solved during many presidential runs and people talked about it. they never did anything. i get a kick out of so many people from past administrations telling me how to negotiate when they were there in some cases

for eight years, they did nothing. but i think the relationship was very warm and when we walked away it was a very friendly walk. mike, you might want to speak to that for a second. >> i agree. i talked with my counterparts as well. look, we hoped we would do more. everyone is focused on how we continue to build on this. we are certainly closer today than we were 36 hours ago. we were closer then than we were a month or two before that. real progress was made. i think everyone hoped we could do a little better but the departure was with an agreement that we would continue to work on what has been an incredibly difficult problem. everyone walked away in that spirit. >> may i add, you and chairman kim are from different political systems, you are from different generation. >> it is a very different system, i would say that's true. >> how do you find things in common? >> we just like each other. we have a good relationship.

yeah, it's a totally different system, to put it mildly. but we like each other. good relationship. go ahead in the back. go ahead. >> mr. president, do you think it was premature to have held the summit when all these things had not been tied down? the white house schedule last night it said signing agreement today. i wonder, as a follow-up question, whether you sketc coud sketch out what the next few months look like. >> you always have to be prepared to walk. i could have signed an agreement today and then you people would have said what a terrible deal, what a terrible thing he did. you have to be prepared to walk and, you know, there was a potential, we could have signed something. i could have 100% signed something today. we actually had papers ready to be signed. but it just wasn't appropriate. i want to do it right. i would much rather do it right than do it fast. yes, please. go ahead. go yogo ahead. first, go, yeah.

you have to speak up. >> i'm a reporter from south korea and i appreciate your effort to advance denuclearization in korean peninsula. could you elaborate on the options and various ways you discussed with chairman kim to advance denuclearization p? could you specify? >> we discussed many ways and the darn is denuclearization iy important word, become a very well-used word. to me, it's pretty obvious. we have to get rid of the nukes. i think he's got a chance to have one of the most successful countries, rapidly, too, on earth. incredible country, incredible location. you have on one side russia and china and on the other side you have south korea and you're surrounded by water and among the most beautiful shorelines in the world, tremendous potential in north korea and i think he's going to lead it to a very important thing economically. i think it's going to be an

absolute economic power. yes, go ahead, please. go ahead. >> david sanger from the new york times. >> i know, david. >> six months ago or eight months ago in singapore, you said if you didn't having in six months we should come back and ask you about it. in that time, you have seen chairman kim increase the number of missiles he's produced, continue to produce more nuclear material and that's been a pressure point on you because he's showing the arsenal's getting larger while this is going on. >> some people are saying that and some people are denying that. they have shots from above, way above and some people are saying that and some people aren't. but i could have taken that out today but i think you and others would have said we didn't get enough for what we would be giving up. you know, don't forget we're

partners with a lot of countries on this if you think about it with the sanctions. we have a whole big partnership with the united nations and many countries including russia, china and others and south korea is very important to this whole thing and japan. i don't want to do something that is going to violate the trust that we built up. we have a very strong partnership. >> can you just give us a little more detail. did you get into the question of actually dismantling the complex. >> yes, absolutely. >> and does he seem willing ultimately -- >> totally. >> to take all of that out? >> totally. >> he wants the sanctions off first. >> he would do that. he wants the sanctions for that. there's plenty left after that. i felt it wasn't good. mike and i spent a long time negotiating and talking about it to ourselves and just i felt that that particular -- as you know, that facility, while very big, it wasn't enough to do what we were doing. >> he was willing to do yungun

but you had to have more than that. >> we had to have more than that. there are other things that we found. that was done a long time ago but the people didn't know about. >> including the uranium enrichment plant. >> exactly. we brought many points up. i think they were surprised that we knew. we had to do more than just the one level. if we did the one level and we gave up all of that leverage that's taken a long time to build, and you i want to take -- >> he wasn't willing to take out the second -- >> i want to take off the sanctions so badly because i want that country to grow. that country has so much potential. they have to give up that. >> there are also timing and sequencing issues that were associated with that as well which we didn't get across the finish line as well. remember too, even that facility, all of its scope which is important for sure still leaves missiles, still leaves warheads and weapon systems, so

there's a lot of other elements that we couldn't get to. >> and the listing of all of them. >> yes, sir, and a declaration. we couldn't quite get there today. >> go ahead. >> thank you, mr. president. >> thank you. >> i just wanted to clarify. when you talk about what you would be willing to give up all of the sanctions for, are you still thinking that you want north korea to give up everything, to do complete verifyable denuclearization before you lift sanctions? >> it's a good question. i don't want to say that to you because i don't want to put myself in that position from the standpoint of negotiation but we want a lot to be given up and we're giving up and we'll be helping them along economically, us and other countries. many other countries are going to be helping. they're going to be in there. they're prepared to help. i can tell you japan, south korea, i think china, so many. and speaking of china, we're very well on our way to doing

something special but we'll see. i mean, i am always prepared to walk. i'm never afraid to walk from a deal and i would do that with china too if it didn't work out. >> are you concerned if you're not able to reach an agreement that the testing will start again or that that while all of this time has passed by they're continuing to develop their program? >> he said the testing will not start. he said he's not going to do testing of rockets or missiles or anything having to do with nuclear and all i can tell you is that's what he said and we'll see. yes, go ahead, please. go ahead, please, in the back. red, in the red. >> thank you. thank you, mr. president. >> thank you. >> jessica stone from cgtn. i have a question about china as you were talk us about. you talk about china being willing potentially to help economically and the fact that you will talk to presidents moon and prime medicine bette ministd

you describe china's role in the negotiations between pyongyang and washington. >> i think china's been a big help, bigger than most people know. on the border, 93% of the goods coming into r nort north korea e through china. there's a great power there. i happen to believe that north korea's calling its own shots, not taking orders from anybody. he's a very strong guy and they're able to do things that are pretty amazing. 93% come in through china. china has an influence. china's been a big help. russia's been a big help too. as you know, there's a pretty small part of the border but nevertheless significant, about 28 miles and things can happen there too. and they've been a help. go ahead, please. >> thanks. jen shun. in your meeting with chairman kim this morning and yesterday, did the topic of china come up? if so, what can you share with

us today and you probably will have the mar-a-lago summit in march with chinese president xi jinping. what would you like accomplished with your agenda regarding china at that time? thank you. >> we did talk about china today a lot. and he's getting along with china and so are we. and we are -- you know, we're right now -- you look at what's happened to our country. we picked up trillions and trillions of dollars of net worth. our stock market is almost at its all-time high. our economy is incredible. our unemployment numbers are among the best we've ever had in our history. individual groups like african american, women, you just take a look at any group, hispanic, you saw that just came out, the best in history, african american, best in history, so many different numbers are coming out so good, so we have the strongest economy, probably possibly that we've ever had. fiat chrysler just announced they're going to spend

$4.5 billion right folks to detroit in michigan. they're building a tremendous plant. it's actually an expansion of another plant. it's going to double up their jobs and even more than that. lot of great things are happening. and with china, they're having some difficulty as you know. but i think that a lot of the difficulty is because of the tariffs that they're having. and in addition to that, we're putting a tremendous amount of money. you saw trade deficits went down last month. everyone is trying to find out why. well, we're taking in a lot of tariff money. and it's going right to the bottom line. it has reduced the trade deficit. so we'll he see what happens with china. i think we have a very good chance their numbers are down. but i don't want that. i want them to do great. but we've been losing anywhere from 300 to $500 billion a year. with china. for many, many years. and again, like other things, many presidents should have done this before me and nobody did.

so we're doing it. go ahead. go ahead, please. >>.right here. this gentleman. >> chad carol from nk news, north korean news. what's your message for president moon who effectively reached the glass ceiling as far as the korean cooperation is concerned due to sanctions. >> i like president moon very much. we have a great relationship. believe it or not, via great relationship with almost every leader, a lot of people find that hard to understand. but i do. but some take advantage of our country like you wouldn't believe and when they know i know it, which i know in every case, maybe it sort of freezes them up a little bit. we have a lot of good relationships. we'll be calling president moon very soon, as soon as i get by the phone on the plane and he'll be one of the first calls.

i'll be calling prime minister abe of japan, telling them where we are and what we're doing. but i'll be making those calls. he's working very hard. president moon is working very hard. he would love to see a deal and he's been very helpful. okay? thank you. go ahead, please. >> thank you mr. president. i'm reporter from global times china. i would like to ask you what are you expecting china to do in the next step to mediate your relationship with north korea? >> to us use china? president xi has helped us a lot, right. i actually called him just recently to say hey, you know, whatever you can do on this. but he has been very helpful at the border and he's been very, very helpful with i think north korea generally.

could he be a little bit more helpful? probably. but he's been excellent. go ahead, please. yeah, please. >> maybe holly next. >> you're friends. >> thanks, mr. president. did you commit with chairman kim to a next summit during your term? >> no, we haven't. we'll see if it happens, it hams. i have not committed. >> they are at this point some would say a nuclear power. do you accept north korea as a nuclear armed state as least for the time being and are you thinking about reimposing the military exercises with south korea or will you keep the freeze? >> the military exercises, i gave that up quite a while ago because it costs us $100 million every time we do it. we fly these massive bombers in from guam and when i first started, a certain general said yes, sir, we fly them in from

guam, it's right next door. right next door is seven hours away. they come and drop millions of dollars of bombs and they go back. we spent hundreds of millions of dollars on those exercises. and i hated to see it. i thoughts it was unfair. frankly, i was sort of of the opinion that south korea should help us with that. we're protecting south korea. i think they should help with us that. so those exercises are very expensive and i was telling the generals, i said, look, you know, exercising is fun and it's nice and they play the war games and i'm not saying it's not necessary because at some levels it is but at other levels it's not but it's a very, very expensive thing and you know we do have to think about that too. but when they spent hundreds of millions of dollars on those exercises and we don't get reimbursed, we're spending a tremendous amount of money on many countries protecting donees tries that are very rich, that can certainly afford to pay us

and then some. those countries -- by the way, those donees trie done -- countw that it's not right but nobody's ever asked them before but i've asked them and we're gaining a lot of money. we picked up over $100 billion just in nato over the last two years, $100 billion more has come in and we're doing that with a lot of countries. you'll be seeing that a lot. yes, sir, please. one second, please. >> thank you mr. president. you have a personal relationship and i believe vice president pence does with the family of otto warmbier. you talked about this week about kim jong un being my friend, you called him on twitter, you said you have a great relationship. have you and singapore or here confronted him about otto warmbier's death and what did he say to you. >> i have. i have talked about it. and i really don't think it was in his interest at all. i know the warmbier family very

well. i think they're an incredible family. what happened is horrible. i really believe something very bad happened to him and i don't think that the top leadership knew about it and when they had to send him home -- by the way, i got the prisoners back. i got the hostages back. and otto was one of the hostages but otto came back in a shape that was not even to be talked about. i find it -- i thought it was horrible. the others came back extremely healthy. but otto came back in a condition that was just terrible. and i did speak about it and i don't believe that he would have allowed that to happen. just wasn't to his advantage to allow that to happen. those prisons are rough. they're rough places and bad things happen. but i really don't believe that he was -- i don't believe he knew about it. >> did he tell you that he did

not -- did kim jong un tell you -- >> he felt badly about it. he knew the case very well. but he knew it later. and you've got a lot of people, big country, a lot of people, and in those prisons and those campings you have campingses yof people and bad things happened to otto. some really bad things. he tells me he didn't know about it and i will take him at his word. yes, ma'am, go ahead, please. go ahead in the back. in the back, behind you. thank you. >> mr. president, -- [ indiscernible ] have you discussed the issue of possible inspections to north korea nuclear sites during your negotiations? >> you're going to have to speak a little louder. where are you from? >> how do you discuss the issue of possible inspections to north korea's nuclear sites during your talks with the chairman?

>> why don't you answer that o one. >> international inspections. >> inspections on north korea. we'll be able to do that very easily. we have that set up so we would be able to do that very easily. the inspections of north korea will take place and if we do something with them -- we have a schedule set up that is very good. we know things that as david was asking about certain places and certain sites, there are sites that people don't know about that we know about. we would be able to do inspections. we think very, very successfully. yes, ma'am, please, please. yes, go ahead, please. yes. >> thank you, mr. president. >> a lot of people here, by the way. big group of people. go ahead. >> kahn news israel.

following this engagement with north korea you're trying to bring fees the middle east. the peace plan is about to be introduced in the near future. >> we hope, we hope. we're working hard on the peace plan and we hope it will be. >> i believe you do. as you mentioned before, it will require israel to make compromises to the palestinians. as far as you know, is prime minister netanyahu willing to make these compromises which are very much needed? and the second question, mr. netanyahu is about to be indicted with corruption allegations. do you wish to tell him something on this occasion? >> well, i just think he's been a great prime minister and i don't know about his difficulty but you're telling me something that people have been hearing about but i don't know about that. i can say this. that he's done a great job as prime minister. he's tough. he's smart. he's strong. he is very defensive. his military has been built up a lot. they buy a lot of equipment from the united states and they pay for it.

of course we give them tremendous as you know subsidy also. $4 billion is a lot each year. but they are -- they've been very good. they've been incredible actually in many ways. there is a chance for peace between israel and the palestinians and you know, it's interesting, all my life i've heard that the toughest of all deals, when they talk about deals, the toughest of all deals would be peace between the palestinians and israel. we were paying the palestinians a lot of money. i ended that about two years ago because they weren't saying the right things. i said why would we pay somebody that is not saying nice things about us and not wanting to go to the peace table. they've been much better. we'll see what happens. >> has netanyahu made concessions. >> i think we have a good shot

of peace between israel and the palestinians. >> do you believe it is possible that north korea and u.s. region could be like the u.s. and vietnam relationship in the future? >> you have to go aagain. >> do you believe that it is possible that relations between u.s. and north korea in the future could it be like the relation between u.s. and with vietnam. >> yeah, i think we're going to have -- yeah. we have very, very good relations. by the way, speaking of you mentioned japan, we have a lot of good things happening with japan. we have trade talks started. for years, japan has been sending millions and millions of cars in and it's not been a very fair situation for the united states many we're starting trade talks with japan. they actually started about three months ago and i think we'll have a very good deal for the united states. but that's been a very unfair situation.

prime minister abe understands that and that's fine. yes, sir, meals. please. make there. >> i'm with shanghai media group. do you think next media could be soon or might take some time? >> i can't tell you. it might be soon. it might not be for a long time. i can't tell you. i would hope it would be soon. but it may not be for a long time. i could have done a deal today but it would have been a deal that wouldn't have been a deal that -- it would have been something that i wouldn't have been happy about. mike would not have been happy about. we had some pretty big options but we just felt it wasn't appropriate and we really want to do it right. yes, in the back. in the back. yes, ma'am, please. >> debbie edward i-tv news. at which point did it become clear that you wouldn't get a deal here in hanoi. the language from yourself and kim jong un was positive last night and even this morning. therefore, was it a mistake to come here? >> i think the language was good

all throughout. the language has been good even now. i don't go by language. we had probably the toughest language in the history of diplomacy, if you call it di blodiplomacy at the beginning ad yet we became very friendly. i don't believe there was any tougher language ever, than that. this is something that should have been handled by other presidents long before me and long before they had the kind of power that they have but it wasn't. it should have been done by many. i'm not just blaming the obama administration which by the way did nothing, nothing, absolutely nothing on north korea. it allowed things that happened and to happen that were he very inappropriate. but i'm not blaming the obama administration. i'm blaming many administrations. something should have happened. but i don't think the rhetoric's been bad at all. initially it was horrible. now it's been very good. one more. how about you. please, go ahead. go ahead.

>> i'm from south korea. channel 8, south korea media. i'd like to ask you, you said we do not particularly know when they will be -- north korean leader would be willing to come to the table and take the actions that's been required. if that's the case, would the u.s. be willing to strengthen the sanctions and perhaps put the pressure on north korea to move forward? >> i don't want to comment on that. i can just tell you this, that we have very strong sanctions. i don't want to talk about increasing sanctions. they're strong. they have a lot of great people in north korea that have to live also and that's important to me. and i would say this. my whole attitude changed a lot because i got to know, as you know, chairman kim very well. they have a point of view also. i don't want to talk about that. i think that hopefully for the sake of south korea, for the sake of japan and for the sake

of china -- i was talking to president xi who really is a man that gets the respect of a lot of people. i say you can't love having a nuclear state right next to china. and he doesn't. he really doesn't. he would like to see that problem solved too. so that's it. ladies and gentlemen, i'm about to get on a plane and fly back to a wonderful place called washington, d.c. so thank you very much. cheryl: we've been listening to of course -- that is a replay of the press conference that president donald trump actually was holding in hanoi, vietnam which happened much earlier than expected. good morning, everybody. i'm cheryl casone. and we have a very special edition of "fbn: a.m." that we of course have been listening to this morning with the president. lauren: we have expert analysis on all angles of what you just listened to, the breaking developments essentially the no deal coming out of these nuclear negotiations in hanoi, vietnam.

let's bring in our panel. we have -- we'll go to a break first and then we'll come right back out. ♪music and (bus sndfx)

♪what you want, baby i got ♪what you need, you know i got it♪ ♪all i'm askin' is for a little respect♪ excuse me ma'am, would you like to have my seat? ♪r-e-s-p-e-c-t ♪find out what it means to me♪ ♪r-e-s-p-e-c-t ♪take care. tcb, oh ♪(sock it to me, sock it to me, sock it to me, sock it to me)♪ ♪a little respect lauren: president donald trump is on his way back to washington after no deal was reached in a second summit with north korean

leader kim jong un. cheryl: the president said the north had demanded a full removal of international sanctions in exchange for the shuttering of its nuclear facility. the president and secretary of state mike pompeo said the u.s. wasn't willing to make a deal without the north committing to giving up its secretive nuclear facility as well as missile and warheads programs. there are no current plans the at this point for a third summit. lauren: stocks fell on the news but they have since recovered a bit. in the us, the dow is down 53 points. it was down triple digits. it is the final day of february and the markets are up at least 3% for the month. in asia, the big decliner, the south korean market, the kospi falling 1 and three quarters percent. the nikkei in japan 0.8%. european stocks are in the red as well. cheryl: we have all of the big angles covered on this breaking news for you this morning. we've got expert analysis, all kinds of great folks standing

by. leting talk with white house correspondent amber a athey. the big story overnight was the surprising and early end to the summit between trump and kim jong un with no agreement being signed. do we know anything more now about where things went wrong, frankly? >> right. so basically what happened overnight was we heard kim jong un tell western reporters that he was open to denuclearization in north korea and all of a sudden we started hearing that the plans had changed, that trump's pressure had been moved up to 2:00 p.m. instead of 4:00 p.m. and trump was wrapping up early and he was heading back to the united states. president trump was not willing to lift sanctions in exchange for partial denuclearization. he was not willing to lift

sanctions prior to north korea denuclearizing. that's where the talks broke down. there are no plans for a summit, another summit at this point but both sides seem optimistic that they'll continue keeping those lines of communication open. lauren: let's bring in jonathan oonig. investor reaction was to downside in the aftermath of the change of plans, no deal being announced. how do you think we'll end today? >> a lot to depend on economic factors at home, specifically with the u.s. market. south korea, however, is a different story. you saw that market fall pretty sharply following this pretty surprising news of the cessation of the summit. it leaves us without a lot of the president's goals accomplished. no denuclearization, but plenty of legitimateization of north korean leader kim jong un. when it comes to the market, it still is a bull market, a albeit

kind of a tired one at that. yesterday, some stocks 52-week highs. disappointment overnight. it will take bigger perils to dethrone the bear market. cheryl: let's bring in todd. obviously, this market has got a lot to watch now, not just the early ending to the summit with no agreement signed between the two nations but also we're in the middle of ongoing trade negotiations with china. the chinese and north koreans have a tight relationship and the chinese have been accused of frankly laundering money for the north koreans. does today's events in your opinion, todd, play into what happens between th china and the u.s.? >> good morning, cheryl. you know, i don't think there's anything really to what happened here. again, this news was not a total shock. it's shocking because we thought there was going to be a press conference. the end of the day, the markets right now want to go higher. they want to churn higher. they're on no volume.

there's no fear to the market. if you look at the fear assets, like the volatility index, there is no fear. right now, the markets are grinding higher. they're doing so on light volume and not a lot of conviction. so we'll see how it plays out. i don't think this will have any real effect. i think the news itself really gets priced in, and china itself, i think a deal's already been priced into the equities. we're up 20% from the bottom here in the nasdaq. that's telling me that the markets have said okay, there's going to be a deal in china, the only question is when. i think that's really where the issues come into. lauren: let's bring in doug bando. my question for you is the crown jewel of north cre korea's nuclr ambitions is a facility that president trump said was discussed, it's a massive facility specifically in the denuclearization talks with chairman kim. do we fully expect hem to completely dismantle thats

facility and others? >> well, the u.s. position has always been complete denuclearization. that's regarded as probably unrealistic by a lot of people. to my mind, what the president has achieved is now talking between the u.s. and north korea is normal, that's very good. what we have to do is try to break this up into pieces and get what we can get if we can close yunbung, that's a major achievement. you don't give them everything. you give them something. that's a place for normal diplomacy. the good news is, they walked away not angry, as the president indicated. they walked away willing to talk and move forward. i'm not terribly upset with this. the idea you would solve it all in one gulp i think was never realistic. this tells is there's a lot of hard work to do ahead. cheryl: amber, as we were listening to that press conference with donal presidentp and mike pompeo, he made it very

clear we're closer today than we were 36 hours ago. you did have a bit of a positive spin from the secretary of state and that these discussions will continue. no confirmation of a third summit but certainly that is a possibility. if you were to -- the timeframe you think for all of this to get more movement forward with the north koreans? >> it's impossible to say. even president donald trump wouldn't make that prediction. he said it could happen very soon that we have another summit, it could take a long time. i would be hesitant to put a timeframe on it. i think the important thing is that president trump showed he's not willing to accept a deal that is not favorable to the united states. he would rather wait and work hard on this and take the time to do it right than to rush into something that is not favorable to the u.s. lauren: michael lee with wealth management. what is the investor take- away

from all of this? >> that at least we did not move backwards. that they'll most likely continue talking and the threat of nuclear war between the u.s. and north korea is becoming a smaller and smaller possibility and i think that's i ultimatelya good thing not only for markets but for the world chef a world. cheryl: as we get closer to the market opening. we're watching futures and we're seeing a retracement with u.s. futures, we're down 55 in the premarket. overnight the reaction was to the news out of north korea. today the markets have a lot more to digest, not just the end of the summit but also what happened in washington yesterday with michael cohen hearings and the ongoing trade negotiations with china. what's on your radar this morning? >> so much. keep in mind, as it's been said, the market is up nearly uninterrupted since the christmas lows, almost 20%. whether it's trade, national debt, whether it's developments in north korea or earnings, as the president likes to say, we'll wait and see what hams. i think the dollar is going to

play a role. i think simply over-confidence is going to play a role and with so much hopes and anticipation on good earnings, on good estimates, on good economic growth, the fact that so many tech companies in particular have been t beating earnings but yesterday after the bell selling off, i think now is probably a better time than any others because of the summit in particular to hold a little more cash than usual, rockier times in march than we saw in february and january in my estimate. lauren: still, todd, people are actually talking about the possibility of doing business in north korea. does that seem possible in the near future? if they open up? >> i don't know if it will be in the near future, lauren. but i think that eventually i think that with president trump at the helm, he wants to get a deal done. i think there's going to be a deal done at some point. again, it could be next month, next year. nobody really knows the answer to that. but i think there will be eventually a deal done there as

long as president trump's in office and i think that it will be good for a lot of the things that we do here but at the end of the day, markets have a way of pricing themselves ahead of time for what to expect and we saw a little bit of a drop overnight based on the initial news and already we've rallied right back. again, i don't see any real issue here and i think the markets will continue until they don't. what jonathan pointed out, there's a lot of over-confidence in these markets t today to whas going on. that's always led in the past to a bigger selloff. we've got gdp this morning as well. cheryl: from a political perspective as well, we're going to be watching so many things as the trading day unfolds. one thing we haven't discussed is what's happening with the europeans. we've got to figure out what we're going to do with regards to our trade relationship not just with britain but with the european union. the markets are watching it happen. also from a policy perspective we're watching what's happening

with theresa may and her leadership could be in jeopardy. >> there's obviously a lot on the table for the president. what happens with brexit is very important in the e.u., the chinese trade talks obviously, and these frankly have a much greater economic impact. economic impact of dealing with north korea is going to take time, relatively small economy. opening that place up will be very complicated, given the political system, even after sanctions are off. so that's a long-term goal. the real issue in northeast asia is stability, making everyone there happier, breathe a bit easier. i think that's already happened. the noter koreans have agreed not to resume testing. that's a huge step. it's a victory for the president. it makes everybody feel a lot better. lauren: we have so many ge geopolitical events taking place right now. i want to bring up pakistan and india, essentially attacking one another. how do you see that playing out?

>> quite honestly, that one is very scary. these are countries that have a long history, they fought wars. pakistan is weaker. it relies on nukes as a deterrent. it hides behind that when a terrorist attack is launched. everyone is very nervous, can they get on off the off-ramp. india struck back. they lost a couple airplanes. china, america has interest there, everybody else in the subcontinent wants to see them back down. this one would be huge. it could go nuclear. i don't think it will. but this is something which the markets will be absolutely freaked about if it did. imagine a country with the second largest population, india, at war with pakistan. it's tied in with afghanistan and everything else. no one wants that. it would be a catastrophe. cheryl: jonathan, that's a good point that doug is bringing up. if you go back in time a year ago, year and-a-half ago, markets were very sensitive to

the nuclear threat from kim jong un. here we are today. markets were very sensitive to what was going on with the chinese, with the europeans. of all of the things that we're facing right now, jonathan, what is the biggest global worry that you have? >> in my estimation it's quite simply over-confidence. a lot of the best performing names have been emerging markets like india, like areas of the world essentially that participate a little nor the upside. they've done very good with the equity market rebound. my fear is just a rising tide lifts all boats. if we get a shoe to drop whether in the middle east, whether it's in india or pakistan or even on trade, you're essentially going to see that process reverse. so exactly what we saw in december play out once again. i'm not saying it's going to happen but i think that's exactly my fear is that this bubble of everything that we've experienced in the last couple of months deflates and deflates fast. lauren: what do you make of that, michael, that it seems like trees right now are growing

to the sky. >> well, look, i don't know -- i don't share the concerns of over-confidence that jonathan does. but in terms of equity valuations. however, this trade deal with china is not done. this pakistan, india story is -- it could go very, very bad, very, very quickly. so that's kind of a horrible overhang. but if trade deals, if trade negotiations break down with china, europe simultaneously and a hard brexit, these are the sorts of things that could derail not only the equity markets but the economy and so i think that's -- i think those factors are why the fed's on hold not necessarily because our u.s. economy is slowing. i think for us and the trade negotiations, our economy is booming. we've added half a million new manufacturing jobs in the last two years which will have a

lasting effect. additionally, looks like we're going to have 3% dep growth for 2018 -- gdp growth for 2018 for the first time since 2005. there's a lot of good things going on here which gives us leverage in the trade negotiations. none of these things are settled. this could go awry. maybe there is too much over-confidence. cheryl: i want to take that back to you, amber. i can't help but think about what's going to go down in mar-a-lago, when president xi jinping will come to the united states many we're expecting a face-to-face meeting. so far, markets have reacted positively to where we are with regards to china and our relationship with them and these negotiations. what do you see based on what you -- you've been with us all night, covering the end of the summit with north korea. what do foresee the effect will be on the chinese relationship as we get ready for the mar-a-lago meeting? >> we have reason to think the talks will go well. obviously president trump delayed increasing sanctions on

china after that first round last wee which would suggest thy were coming close to reaching some kind of agreement. i think what the important take-away out of the north korean summit is for the chinese is that president donald trump is willing to play hardball, just because he delayed the sanctions this time around doesn't mean that he's going to go soft if he doesn't like the deal that the chinese offer. so this will be a good indication of what the president will bring to the table when xi jinping comes to mar-a-lago. lauren: doug, are sanctions the only point of leverage right now? >> well, i think that kim likes the diplomatic game. i think that's one of the interesting things that we've seen. so he has something at stake here. he's had multiple summits with president xi of china, president moon, there's talk of him meeting putin. he has a an incentive for this o go well and he does want

economic growth. the sanctions are a powerful leverage. this is an auto crate. this is a man who took over after his father at 28. he wants to hold onto power. that's what nukes give him. they give him leverage. they give him security. we've got to address that. we think differently about politics than a place like that. you end up dead there if you lose. he doesn't want that. cheryl: todd horowitz, that is something that's going to be -- letted add thalet's add that tol global war of worry. market participants have been worried about a global growth slowdown. we've got a city blow mattic -- diplomateic story we're laying into all of this. >> there's a lot of concerns out there. the global economy is not as good as everybody might thing it is and there's issues. the one biggest thing that's going to an issue is if the china trade deal fails. it's been fully priced into the market in my opinion. this will be a buy the rumor,

sell the news. even when the deal is announced, i think it will be, the markets will sell off anyways. we've gotten to a point where we've welled i well priced in eg that could possibly happen. lauren: todd, jonathan, amber, doug, thank you very much. thank you for sticking with us on this very busy historic morning. cheryl: a special edition of "mornings with maria" starts right now. maria: good morning. thanks so much. an hour earlier this morning. thanks for joining us. i'm maria bartiromo. it is thursday, february 28th. we have breaking news this morning, no deal with north korea. >> it was a very interesting two days. i think actually it was a very productive two days. but sometimes you have to walk and this was just one of those times. maria: president trump now on his way back to washington after cutting his nuclear summit short with kim jong un. the north korean leader wanted all of the sanctions lifted. that wasn't happening. the fallout coming up this